According to Statista, the global influencer marketing industry is set to hit $27.7 billion by the end of 2024. There has been an increasing trend of brands allocating a better chunk of their marketing budget to this strategy. Negotiating with influencers has now become an in-demand skill in digital marketing. But how does one master this game of negotiation? This article will guide you through strategic moves for that perfect influencer partnership.
Types of Compensation
Before negotiating with influencers, one needs to understand the common types of compensation and incentives offered to creators.
Flat Fees:
Marketers usually choose this method when collaborating with a new influencer. They pay the influencer a fixed amount for the campaign, and it’s not dependent on the performance.
Pay-per-Post:
This is another simple way of compensating influencers. The rates are fixed for each content uploaded by the influencer for your brand.
Pay-per-Performance:
In this model, a creator charges a rate based on their engagement with the brand content. Metrics like likes, views, and shares are used in this method for negotiating with influencers.
Commission:
Here, the influencers are entitled to share in the profits when their content generates a specific amount of sales or lead conversions.
Gifting:
Gifting is one of the budget-friendly compensation models. Brands offer free products or services to the influencers in exchange for content.
Retainers:
This payment method deals with long-term partnerships between the influencers and the brands. The brands pay the influencers, every month, a fixed amount for recurring promotions and frequent postings.
Tips to Make Negotiating With Influencers Easy
The following list offers some effective steps one must remember before going for influencer partnerships.
Doing a Thorough Analysis of Influencer Data
Before collaborating with influencers, brands must know how well their content is performing. It’s crucial to see if the influencer aligns with the brand image and can be an asset in promotions. Metrics like the number of genuine followers, engagements, and audience demographic can help you determine a budget for the influencer chosen.
Discuss the Type of Content and its Ownership
One shoe doesn’t fit all. Similarly, different products need different promotion strategies. Negotiating with influencers requires you to lay down the kind of content you are looking for first. Some influencers excel in static posts, and some pop off with video content. Many do well in both. Hence, brands need to be clear about the content they need. Other aspects one must consider are post frequency, required engagement rates, posting platforms, and promotion timeline.
Also, brands should be clear about how they intend to use an influencer’s content. Before signing off on a deal, post ownership and content usage rights must be thoroughly discussed.
Also Read: Finding the Right Influencers for Your Brand
Ask for the Influencer Rates First
Once you’ve finalized someone, asking them about their rates first is a recommended move for negotiating with an influencer. This helps brands avoid lowballing influencers and build a trusted partnership with them. If you are communicating with an influencer through their agency, ensure their rates include the agency fees.
Now, based on the budget, one can accommodate the rates quoted by the influencer. Knowing influencer rates can also help brands to choose a payment model. Comparing the rates with earlier influencer partnerships makes it easy to see if their demands are reasonable. Moreover, it also helps you determine if you can afford a long-term partnership with them.
Give a Counter Offer
As expected, influencers with good ROIs charge higher rates. If the rates exceed your budget, it’s time to tweak your offers smartly. The goal is to understand what the influencers seek from the partnership and give incentives accordingly. Micro-influencers would love a free product, while macro-influencers might ask for commissions in addition to their flat rate.
One can offer the influencers discounted rates and a long-term partnership instead of a one-time deal. Creators love the visibility, and gifting them invites for high-profile events can be a game-changer while negotiating with influencers.
Most of the influencers are essentially creators. They love coming up with new and unique to engage with their audience. Therefore, including flexibility and creative freedom in brand content can be enticing. Moreover, seeking their input while making campaign strategies can help them connect with the brand more personally. This, in turn, can coax them to discount their rates.
Maintaining Proper Communication with Influencers
Brands must remember that, in general, influencers deal with multiple offers from different companies. So, maintaining a proper communication channel with them can establish your credibility and reliability.
Companies should put forth their expectations professionally and respectfully while negotiating with influencers. The negotiations must be transparent, and an effective feedback mechanism must be implemented. Timely payments and rate changes with consistent results can retain your influencer base and stop them from partnering with competitor brands.
Measure Current Strategies for Future Deals
Signing a deal with an influencer and getting brand content isn’t the end of an influencer partnership. Brands must analyze the performance of their influencer marketing campaigns and upgrade their strategies for better results. This also helps them to decide the budget for their next campaign. Successful campaigns make negotiating with influencers easy and affordable for future partnerships.
Conclusion
The art of bargaining a deal is like a game of chess, and negotiating with influencers is no different. Content is king, and every move should be calculated, not to checkmate but to reach a draw. A good partnership ends up benefitting both the parties. So, brands should not only focus on what they want but also on the needs of the influencers. Reaching a middle ground and aligning the objectives can pave the way for successful negotiations.
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